Switzerland’s biotechnology companies have pivoted dramatically toward private investment sources during 2025, according to a new industry analysis released Tuesday. The shift comes as traditional capital market funding has become increasingly difficult to secure.
The Swiss Biotech Report 2026 reveals that while overall sector funding grew modestly by 2.1% to reach 2.6 billion Swiss francs (equivalent to $3.32 billion), privately-funded companies saw their investment jump by 38% compared to 2024. Private funding now represents almost half of all biotechnology investment in the country.
Drug manufacturers are increasingly choosing research and development partnerships, licensing deals, and other collaborative arrangements that provide financial support to their biotech partners, according to the report’s findings.
Michael Altorfer, who leads the Swiss Biotech Association as chief executive, indicated during a presentation that this pattern is likely to persist, while traditional merger and acquisition activity has slowed considerably.
Frederik Schmachtenberg, an EY partner who serves as global life sciences lead for Financial Accounting Advisory Services and helped author the report, explained the reasoning behind this trend. “It’s a global trend that pharma companies are trying to de-risk these structures,” Schmachtenberg said during an interview.
Schmachtenberg noted that capital markets continue to face difficulties following what he described as the “sugar high” period during the COVID-19 pandemic years.
According to Altorfer’s statement, foreign sources continue to provide the majority of investment funding.
The Swiss biotech industry achieved record-breaking revenue of 7.5 billion francs during 2025, the report indicated. This growth was fueled by an increasing number of companies reaching commercial operations and rising demand for specialized contract manufacturing and development services.
While product approvals decreased somewhat in the United States, Europe and Switzerland, this decline was partially balanced by increases in other important markets, particularly China and Canada, the report noted.
